US 30-year bond yield hits 5.35% new high despite $6 billion buyback bid
Global markets plunged after US attacks on Iran, driven by inflation fears and soaring debt levels. Treasury Secretary Scott Bessent's $6 billion bond buyback failed to stop yields climbing to historic highs.
Oil prices surged above $100 per barrel following fresh US strikes on Iranian targets. Stocks fell as investors reacted to rising inflation and concerns over government debt exceeding $40 trillion. In the eurozone, inflation reached its highest level in three years in August due to energy costs. Bitcoin dropped below $77,000 as risk assets faced macro headwinds. The US 30-year bond yield climbed to 5.353 percent, a level not seen since June 2007. Treasury Secretary Scott Bessent attempted to support the market by announcing a buyback of up to $6 billion in longer-dated Treasurys for Thursday. Despite this intervention, yields continued to rise. The benchmark 10-year yield jumped from 4.79 percent to nearly 5 percent, marking its highest level since 2007. Japan's 10-year bond yield touched 3 percent for the first time since 1996. Analysts noted that rising yields did not reflect the underlying fundamentals of the market as Bessent had suggested.
